On Labor Day it's appropriate to turn our thoughts to the "Fight for $15," that is, the attempt to convince government to legislate a $15 an hour minimum wage. This sounds attractive to those working at low wage jobs, and economists have been debating the pros and cons of raising the minimum wage for years, but common sense tells us it's a very bad idea in terms of its overall effect. Indeed, where it's already been tried it has proven to be a good illustration of the law of unintended consequences.
A recent study has shown that those who have been predicting that raising the minimum wage would result in fewer jobs, fewer businesses, and a greater drag on the economy appear to have been right.
Here's a short video from Prager U. which outlines the reasons why raising the minimum wage hurts a lot of people and helps no one except liberal politicians and a relatively few lucky low wage workers.
Have a nice Labor Day holiday.